The Jakarta Post, Jakarta<\/p>\n
Having received approval during a shareholders meeting Thursday night, publicly listed state coal mining company PT Tambang Batubara is set to begin upgrading its coal transportation systems.<\/p>\n
PTBA will establish a joint venture with state railway company PT Kereta Api Indonesia (KAI) to upgrade a coal transportation system in Sumatra this year.<\/p>\n
The coal transportation system consists of two railway tracks: From Tanjung Enim coal mine in South Sumatra to Tarahan Port in Bandar Lampung, and the second from Tanjung Enim to Kertapati pier in Palembang.<\/p>\n
PTBA president director Sukrisno told reporters after a shareholders meeting the upgrade was intended to gradually increase coal carrying capacity on railway tracks from eight million tons per year to 20 million tons within five years.<\/p>\n
The total investment for the upgrade, he said, could reach up to Rp 6.39 trillion (US$686 million), with 70 percent coming from loans and the rest from the two companies' internal cash flows, of which PTBA would be responsible for up to 30 percent.<\/p>\n
PTBA will also team up with PT Transpacific Railway Infrastructure (TRI) and China Railway Engineering Corporation (CREC) to develop another railway track connecting Tanjung Enim to Tarahan port.<\/p>\n
\"The new railway track is expected to be ready for use in 2013,\" Sukrisno said.<\/p>\n
The development of the railway track is estimated to absorb $1.06 billion, of which 70 percent, or $743 million, will be financed through loans and the rest generated from the companies: with PTBA contributing 10 percent, TRI 80 percent and CREC 10 percent.<\/p>\n
With TRI, the company also plans to establish a joint venture, to be called PT Mining, to develop a coal mine in Bangko Tengah, South Sumatra, which may require a total investment of $19.19 million, 70 percent of which would come from loans.<\/p>\n
The company expects the mine to produce 5 million tons in the first year, 10 million tons in the second and 20 million in the third.<\/p>\n
Among the company's other plans this year, Sukrisno said, had been the acquisition of a 100 percent stake in state-owned coal shipping company PT Pelayaran Bahtera Adhiguna. The plan, however, was rejected by the majority of the shareholders.<\/p>\n
\"We only got a 48 percent vote of approval from the shareholders for this acquisition plan,\" Sukrisno said, adding that a minimum 50 percent was required.<\/p>\n
PTBA aims to boost sales volume by 20 percent to 13 million tons in 2008, with 60 percent allocated for domestic consumption.<\/p>\n
With the increased sales volume, PTBA is targeting to increase its net profit by more than 20 percent from Rp 760 billion in 2007.<\/p>\n
\"For this year, we're optimistic to get a profit of more than Rp 1 trillion,\" Sukrismo said.<\/p>\n
In the first quarter of this year, PTBA booked a 29 percent increase in sales income to Rp 1.23 trillion, causing its net profit to grow 44 percent to Rp 286.39 billion due to increases in prices and demands. (rff)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ba-to-improve-coal-transport-systems-1212467928", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }